SURVEY OF INTERNATIONAL ECONOMICS COURSEMODULE 12: Textbook Reading:Interest Rate Parity Presentation Slides:Recent Events/Analysis: |
OVERVIEWThis session shows how to determine rates of return on foreign investments and how to apply those calculations to a model of exchange rate determination. Variables that affect rates of return, such as interest rates and expectations, are shown to influence the value of a floating exchange rate. The session will also provide a generalized version of the interest rate parity theory that goes beyond the rate of return formulas.
VIDEO LECTURE
This lecture was recorded in Fall 2016. It is 79 minutes long.
ANSWER KEYClick HERE for answers to the textbook questions. |